Well-known computer chip manufacturing company Intel will undergo a major management change as CEO Bob Swan steps down next month. He will be replaced by Pat Gelsinger, a leader in the tech industry for 40 years
“Intel announced today that its board of directors has appointed Pat Gelsinger, a 40-year technology industry leader, as the new CEO, effective February 15, 2021,” the company said in a released statement. Wednesday.
“He will succeed Bob Swan,” he added.
Although the company said the decision to remove Bob Swan was “unrelated” to Intel’s financial performance.
The move comes after a hedge fund firm Third Point, led by activist investor Daniel Loeb, sent a letter to the company about changes in its business strategy.
On Jan.4, Swan met with Third Point chief executive Dan Loeb and Intel chairman Omar Ishrak, according to a person familiar with the matter. Loeb pushed Intel to find new leaders and potential new board members and held at least one follow-up meeting.
In its letter, the hedge fund firm said that Intel “should consider outsourcing its manufacturing operations to keep pace with industry competitors such as Taiwan-based TSMC and South Korean giant Samsung, among others.
“We suggest that the board retain a reputable investment advisor to assess strategic alternatives, including whether Intel should remain an integrated device maker and the potential divestment of some failed acquisitions,” the letter added. .
It is worth noting that although Intel is the world’s largest chipmaker, it lags behind its competitors in the rapidly growing segment of mobile devices. Moreover, the leading position in the chip manufacturing avenue may be overthrown by Apple in the near future, as it develops its own microprocessors for its Mac computers.
Gelsinger, the man replacing the current CEO, is currently CEO of software company VMware, but spent 30 years at Intel and also served as COO of the Infrastructure Products division of information from EMC, the company said.
“Having started my career at Intel and learned at the feet of Grove, Noyce and Moore, it is my privilege and honor to return to this leadership position,” Gelsinger said in a statement. “I have enormous respect for the company’s rich history and the powerful technologies that have created the global digital infrastructure.”
Sources familiar with the matter told Reuters that Gelsinger had turned down the senior Intel job before and it was not immediately clear what changed his mind.
Intel also said on Wednesday that it plans to beat its financial forecast for the fourth quarter of 2020 and has made “strong progress” in addressing issues with its 7-nanometer chip manufacturing technology.
(With contributions from Reuters)